Battery Thermal Management System Market for Mobility and Consumer Electronics

Market Overview

The global battery thermal management system market for mobility and consumer electronics was valued at USD 5,915 million in 2022. It is estimated to reach USD 38,311 million by 2031, growing at a CAGR of 23.07% during the forecast period (2023–2031).

A battery thermal management system regulates the rate at which heat is removed from the cells during electrochemical processes enabling safe and efficient battery use. By controlling the heat produced by its components for continuous operation at the ideal temperature, the main goal is to prevent accelerated battery degeneration. As more emphasis is placed on reducing safety hazards, the market for battery thermal management systems for consumer electronics and mobility still has a lot of space to expand.

The International Energy Association (IEA) reports that between 2020 and 2021, battery-electric and plug-in hybrid vehicle sales nearly doubled to 6.6 million units. Despite the strains on the global supply chain, a record of approximately two million units of electric vehicle sales was made in quarter one (Q1) of 2022. The rising electric vehicle sales are leading to the need for a battery thermal management system to maintain energy storage capacity, cell longevity, system safety, and driving range.

Market Dynamics

Market Drivers

Rising Demand for Electric Vehicles (EVs)

Lithium-ion batteries are preferred for energy storage in electric vehicles (EVs) because of their excellent technical specifications. The commercially available lithium-ion battery comes with a low discharge rate and long life cycle, while the limited energy density of lithium-ion batteries causes low efficiency. Thus, to overcome these issues battery thermal management system is used to maintain the optimal temperature. The major factors driving the demand for EVs include urbanization, regulation of congestion and pollution, the rising prevalence of charging stations, and improved battery technology range.

The lithium-ion battery electrode modification and thermal management system are essential in enhancing the performance of lithium-ion batteries for electric vehicle applications. As a means of dissipating the heat produced by the storm during vehicle operation, the coolant in the battery thermal management system comes into direct or indirect contact with the battery. Battery thermal management systems are becoming more and more necessary as electric vehicle use rises in order to control heat dissipation. According to the International Energy Association (IEA), more than 10 million electric passenger vehicles were on roads in 2020 with battery-electric models. The rise in the development of new models and their demand is leading to the growth of electric cars and hence the battery thermal management system market for mobility and consumer electronics.

Increasing Stringent Government Regulations

Increased greenhouse gas emissions and local air pollution threaten development, with mounting evidence of their adverse environmental and health consequences. In addition, the Asian Development Bank (ADB) supports sustainable and low-carbon growth across Asia-Pacific with its new policies. According to the Organization for Economic Co-operation and Development (OECD), economic progress necessitates decreasing greenhouse gases brought on by increased energy use, automotive traffic, and other associated activities. Therefore, to decrease greenhouse gas emissions and reduce global warming, governments of various countries are imposing bans on greenhouse-emitting fuels and supporting green energy technologies, including lithium-ion batteries, in their cycle.

At the same time, the battery thermal management system plays an essential role in increasing the stability and life cycle of the battery. The rising initiatives by various global governments have formed stringent regulations, resulting in shifting customer preference from internal combustion engines (ICE) to battery vehicles. 

Market Restraint

Expensive Battery Thermal Management System Technology

The battery thermal management system is gaining importance to become an integral part of the battery power supply system to achieve enhanced performance, safety, and a longer life cycle. Two primary sources of heat generation in a battery cell are electrochemical operation and the motion of electrons within battery cells. Due to the popularity of rapid charging and performance driving, the heat losses in the cell increase due to the high current in the cells.

The design of energy-dense packs must use robust cooling systems, frequently incorporating liquid cooling loops with hundreds of channels. As a result, the thermal management of an EV battery pack becomes crucial. As per the industry player, the complexity of these systems adds to around 10-20% of the overall cost of the battery pack. Hence the higher the number of battery packs in any vehicle, the more efficient the battery thermal management system should be, which leads to a rise in the cost of the system, thereby hampering the market growth.

Market Opportunities

Rising Demand for Lithium-Ion Batteries

Lithium-ion batteries are used in almost everything, from cell phones and laptops to electric cars and grid storage. These are temperature-sensitive and will most likely degrade in extreme cold or heat. Thermal management systems for batteries are made to keep the temperature of the batteries within the ideal range of 20 to 55°C. The price of lithium-ion battery cells decreased by 97% between 1990 and 2020, according to the Environment Defense Fund (EDF), which estimates that in 2021. Battery technology advancements have not just decreased costs; they have also seen an increase in cell energy density, raising the price of the battery pack needed to produce the required amount of power. Industries like automotive, consumer electronics, energy storage, and others are essential drivers of the expanding demand for lithium-ion batteries, opening up the potential for the industry to expand.

Regional Analysis

By region, the global battery thermal management system market for mobility and consumer electronics is divided into North America, Europe, Asia-Pacific, and the Rest of the World.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant shareholder in the global battery thermal management system market for mobility and consumer electronics and is anticipated to grow at a CAGR of 23.54% during the forecast period. China is one of the largest manufacturers and consumers of electric vehicles, smartphones, laptops, tablets, etc. According to the China Internet Information Center, China created an innovative policy structure to expand the country's electric vehicle market. This structure includes pilot programs, central and local EV purchase subsidies, tax breaks, EV production mandates, etc. According to the China Internet Information Center, in 2021, China overtook the U.S. as the world's largest exporter of consumer electronic devices, including computers, mobile phones, and digital cameras, the major end-use industries for battery thermal management systems.

Europe is estimated to grow at a CAGR of 22.21% over the forecast period. The region comprises several developed economies, such as Germany, France, Italy, Spain, and the Rest-of-Europe. These countries have various industries, including automotive, consumer electronics, medical equipment, telecommunications, and several others. In addition, the region's significant demand for battery thermal management system products comes from electric vehicles, consumer electronics, and power storage systems. The International Council for Clean Transportation (ICCT) says that the share of battery electric vehicles in the automotive market in the region grew by more than 6% in 2020 and by more than 9% from January to November 2021. The need for lithium-ion battery packs is increasing due to Europe's stringent rules on car emissions, which is also driving the expansion of the battery thermal management system market for consumer electronics and mobility in the region.

The North American region comprises countries including the U.S., Canada, and Mexico. The significant growth in the region is witnessed by the growing end-user industries such as electric vehicles, smartphones, laptops, and others. The increasing demand for electric vehicles drives the rising adoption of battery thermal management systems due to zero-emission, the rising need for high tank-to-wheel efficiency, and the declining cost of battery packs. The declining price, increasing rate of charging, and more extended range are raising the demand for efficient battery thermal management systems. The presence of leading companies at every step of the supply chain for battery thermal management has helped the growth market in the region.

Segmental Analysis

The global battery thermal management system market for mobility and consumer electronics is segmented by application, types, battery types, and technology.

By application, the global battery thermal management system market for mobility and consumer electronics is divided into mobility and consumer electronics.

The mobility segment owns the highest market share and is anticipated to grow at a CAGR of 22.48% over the forecast period. The mobility segment is sub-segmented into passenger vehicles and commercial vehicles. Earlier, powertrains in passenger vehicles were internal combustion-based engines, which are currently shifting toward battery-powered motor vehicles to reduce greenhouse gas emissions. Lithium-ion batteries are primarily used in electric passenger vehicles, which offer efficient performance at an optimal temperature between 20°C to 40°C. A battery thermal management system is used in these electric passenger vehicles to maintain the optimal temperature for obtaining a high output, increased battery life, and better performance for a longer duration.

The developed battery thermal management system for commercial vehicles is a combination of thermoelectric cooling, forced air cooling, and liquid cooling. The liquid coolant has roundabout contact with the battery and goes about as the medium to eliminate the intensity created by the battery during activity. The main objective of battery thermal management is to reduce uneven temperature dispersion. For instance, the system is necessary to maintain the temperature variation because the homogeneity of the temperature inside the battery pack is between 3°C and 4°C in conditions that range from -35°C to 50°C.

The consumer electronics segment is sub-segmented into mobile phones, laptops and tablets, wearables, and others. Heat management is a typical bottleneck in smartphones because the in-built functionalities and required power dissipation levels are increasing. At the same time, the size of phones is being miniaturized, and the demand for charging speed is increasing. The performance of components will be degraded if overheating occurs in the device due to the absence of a battery thermal management system. The demands for fast charging and large energy storage capacity for laptops and tablets are increasing.

Lithium-ion batteries generate significantly higher heat during discharge than during charging. Therefore, for safety reasons, cylindrical lithium-ion cells are often equipped with current interrupt devices, shutdown separators, and vent mechanisms used to provide safety to the devices. These devices are only effective after the initiation of thermal runaway in lithium-ion batteries. The wearable consumer electronic devices may include pacemakers, neuro-prosthetics, smart rings, smart badges, smart wristwatches, smart eyeglasses, smart jewelry, smart shoes, smart clothing, and others. Other consumer electronics products consisting of battery thermal management systems include small portable speakers, cameras, virtual reality and augmented reality devices, small battery-backed grooming devices, and others.

By types, the global battery thermal management system market for mobility and consumer electronics is divided into active, passive, and hybrid.

The active battery segment is the highest contributor to the market and is anticipated to grow at a CAGR of 21.29% over the forecast period. Active battery thermal management systems consist of moving fluids in their battery cooling system and perform cooling either by direct or immersion cooling operations. The active battery thermal management system has advantages, including simple design, low cost, accessible forced air convection technology, and high efficiency. The advanced active battery thermal management technology involves vapor-liquid phase change operations to offer more efficient temperature control. Due to providing low-cost and effective temperature control, the demand for an active battery thermal management system is increasing, and the market players are focusing on developing cost-effective solutions.

The passive battery thermal management system is defined based on the materials used; moreover, the passive system is when the fluid is not present. Passive battery thermal management systems are used as an alternative technology in place of active systems to overcome their operational disadvantages, including high operating costs, leakage of liquid coolant, and many more. The passive systems are mainly used for maintaining the optimal temperature of the battery cells, including phase change materials (PCMs) and heat pipes (HPs). Passive battery thermal management systems offer significant advantages of low operating cost and high thermal homogeneity and are mainly used in consumer electronics applications.

By battery type, the global battery thermal management system market for mobility and consumer electronics is segmented into conventional batteries and solid-state batteries.

The conventional batteries segment owns the highest market share and is expected to grow at a CAGR of 22.48% for the forecast period. Conventional batteries, including lead-acid, nickel-based, and lithium-ion batteries, are leading in the battery thermal management system market for mobility and consumer electronics. These batteries use a flooded electrolyte in the thermal management process and are commercially available at a minimal cost. The currently available electric vehicles (EVs) and hybrid electric vehicles (HEVs) have significant requirements from the battery technologies for the powertrain and additional functionalities, including power assistance, regenerative braking, and electric auxiliaries.

The solid-state battery uses a solid electrolyte rather than a liquid electrolyte solution. This solid electrolyte also plays a role of a separator between the anode and cathode. The major problem with applying conventional batteries, including lithium-ion batteries, is safety and stability, as the electrolyte maintains its form even after it gets damaged. In addition, the current lithium-ion battery risks battery damage, such as swelling caused by temperature variation or leakage caused due to external force, as it uses a liquid electrolyte solution. However, a solid-state battery offers improved stability due to a solid electrolyte with a solid structure and increased safety since it maintains the form even if damaged.

By technology, the global battery thermal management system market for mobility and consumer electronics is segmented into air cooling and heating, liquid cooling and heating, refrigerant cooling and heating, and other technologies.

The liquid cooling and heating segment is the highest market and is anticipated to grow at a CAGR of 22.30% over the forecast period. Direct-contact liquid or dielectric liquid cooling can contact the battery cells straightforwardly, like mineral oil. The other type of liquid is direct or indirect-contact liquid, which can contact the battery cells by implication, like a combination of water and ethylene glycol. The typical design for direct-contact liquid is for lower mineral oil modules. For indirect-contact liquid, a potential design can be either a coat around the battery module, discrete tubing around every module, putting the battery modules on a cooling/warming plate, or joining the battery module with cooling/warming blades and plates.

A refrigerant-based cooling and heating system often has a thermal plate for applying heating or cooling. The phase change of the refrigerant in the thermal plate offers high heat transfer coefficients and homogeneous cell temperatures as, for low-pressure drops, the temperature is almost constant during phase change. However, the thermal plate and tubing must be able to bear the higher system pressure and water condensation, which can occur on the thermal plate under high humidity conditions. In addition, controlling the dissipation of a large amount of heat in a standing vehicle is only possible by increasing the radiator size, fan performance, or temperature level. Moreover, refrigerant cooling and heating technology help in heat circulating and protecting the devices in extreme conditions, intended to increase the demand for battery-related applications during the forecast period.

Recent Developments

• November 2022- Samsung SDI announced that it had signed an agreement with Sungkyunkwan University to establish a battery technology course. Under the agreement, the parties will launch and operate a class where students learn about developing future rechargeable batteries to nurture experts on battery materials, cells, and systems.
• October 2022- Samsung SDI presented a set of environmental management plans. The plans include eight specific goals organized around two themes: responding to climate change and reusing resources. The goal is to have net zero carbon emissions by 2050.